FCF Valuation Monitor – Q1 2020 published

The FCF Valuation Monitor is a comprehensive valuation analysis for the German small / midcap market segment and is published by FCF on a quarterly basis.

Key insights of Q4 2019 are:

Induced by the global coronavirus (covid-19) pandemic, all four major German indices are trading significantly lower than three months prior as nations across Europe enter lockdowns. The performance across the four major German indices in Q1 2020 range between -18.2% and -29.1%.

The majority of industries showed negative share price performances with a decrease ranging from -3.6% to -44.6% in the last 12 months. However, the Pharma & Healthcare, Software and Renewable Products / Services sectors showed positive performances with increases of +16.6%, +11.8% and +10.3%, respectively.

Based on 2018 and 2019 EBITDA-multiples, the Pharma & Healthcare, Software and Internet Products / Services peer groups show the highest valuations at 21.6x, 17.7x and 9.7x in 2018 and 13.7x, 16.3x and 14.1x in 2019. Meanwhile, the Communications Services, Automotive Supply and Construction Products / Services peer groups show the lowest valuations at 3.9x, 5.5x and 5.8x in 2018 and 5.1x, 5.1x and 4.0x in 2019, respectively.